Investing.com - European stocks were mostly lower on Monday, as ongoing turmoil in emerging markets continued to weigh on sentiment.
During European morning trade, the EURO STOXX 50 edged down 0.1%, France’s CAC 40 shed 0.2%, while Germany’s DAX 30 dipped 0.3%.
Europe was given a negative lead from Asia, where the Nikkei plunged 385 points to hit a two-month low earlier in the day. That followed a dismal session in the U.S. on Friday, as investors fled risk amid growing fears over a slowdown in emerging market economies.
Financial stocks were broadly lower, as Italian lenders Unicredit and Intesa Sanpaolo fell 1.4% and 1.1% respectively, while Germany's Commerzbank retreated 1.8%.
Market players looked ahead to the release of Germany’s Ifo report on business climate later in the session.
Elsewhere, in London, FTSE 100 tumbled 1.1%, as investors reacted to corporate news.
Vodafone saw shares plunge 6.3% after The Times reported that the telecom giant has approached the private equity owners of Spanish broadband operator ONO about a potential GBP7 billion offer.
BG Group shares tumbled 13.6% after the natural gas producer provided weak guidance for 2013 earnings and said that it has issued force majeure notices under its LNG agreements in Egypt.
Meanwhile, in the U.S., equity markets pointed to a modestly higher open. The Dow Jones Industrial Average futures pointed to a 0.15% increase, S&P 500 futures signaled a 0.25% gain, while the Nasdaq 100 futures indicated a 0.2% rise.
Investors were looking ahead to the outcome of the Federal Reserve’s monthly meeting on Wednesday, amid expectations for a reduction in its bond buying program to USD65 billion from the current USD75 billion.
The policy meeting will mark the last for outgoing Fed Chairman Ben Bernanke, as current Vice Chair Janet Yellen prepares to take over.